All Topics / General Property / Time Needed for Equity Release
Hi,
I have a ‘purchase land and build’ investment strategy where I buy in areas which typically have experienced a high level of growth upon completion of the build. My most recent property has a value approx. 30k higher than when I purchased the land (13 week construction) however it seems I am unable to access this capital. My broker has assured me that the banks valuers will not even look at property that isn’t at least 1 – 2 years old, this seems crazy (along with every other aspect of bank valuations).
Is my broker correct? and if so does anyone know of any way around this? Also I am assuming that once the 1-2 year time frame has lapsed I am free to access capital through valuations at my discretion?
Any info on this would be great.
Valuers will often value a property at purchase price if the reval is conducted within the first 12 months.
However, if the property was newly built, you may have some luck.
What’s the current LVR?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie .. this could be good news.
LVR is 90%
Have to disagree with your Broker.
No set time although often hard to get valuers to place a higher valuation figure on a property (over and above land + construction) within 3-6 months.
It is going to depend on who the lender is and the panel of valuers they use amongst other things.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Jamie and Richard, this info is invaluable – I can now hopefully get cracking with my 3rd.
I have to say the broker is incorrect, Many lenders will allow instant revaluations while others want you to wait 3 to 6 months.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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